Speaker 1: Panic in Wall Street in the face of the advance of Chinese artificial intelligence DeepSeek. What is this? Why is it important? And is it really a threat to North American technologies? We are going to talk about all this and be very careful with what I am going to say. And above all, get ready because what I am going to comment is very important for all of us. Go ahead. Hello everyone and welcome to my channel. Thank you very much for subscribing, thank you for leaving your comments and thank you very much for liking this video. DeepSeek, Chinese artificial intelligence, is presented as a real hit by North American technologies. The fall in the stocks is very important and a panic has been generated in Wall Street in the face of what could be a much cheaper competitor, much more efficient. But does it have deception? Does it have a trick? What is the reality of DeepSeek? Join me. The first thing we have to understand is that DeepSeek is not an alternative to the enormous needs of capital investment by North American technologies. It is a company that is a consequence of those investments. The DeepSeek model uses and needs Yama and Kuen, which are open models and technology that was previously created by Meta and its gigantic investments. Without these models and without these technologies, DeepSeek cannot continue to advance. Therefore, it does not have the ability to generate the investments that would lead to the growth that could lead to, let's say, eliminating other providers and other technology companies as a competition. Not only is this not a problem, but it is good because everything that has to do with technology and everything that has to do with competition is very, very, very positive. What have we seen? Immediately there has been a huge drop in the North American stock market. We have seen how the announcement of this platform, which also has huge competitive advantages, has generated a drop of more than 3% in the Nasdaq, the technological index. It is also important to see that in context, that is, the fall of 3% of the Nasdaq in the context of the huge rise it has had in recent years. Well, once we understand that put in context, we also have to see who are the most affected. Indeed, we have seen how the Nasdaq fell. Envy is one of the most affected, of course, as many friends like Gustavo Martínez well explain. Envy, which already has a very high valuation, well, of course, news like this immediately generates panic, right? But also look at what the valuation is, the valuation of the Nasdaq, of that North American technological index. Indeed, we are talking about a price on benefits of 36 times, very high, with a valuation with respect to books of 8 times, also very high, and with, but beware, with a valuation in terms of what sales are, quite, quite attractive. But in any case, technology is always much more expensive because it has much greater margins and has much greater growth. But in any case, obviously, in the face of news that can generate some tension in such a competitive market, of course, a competition from a provider that can be much cheaper and much more efficient is clearly a factor. Of course, we also have to realize that in the downs, there are also a lot of values in the technological sector that are rising on this supposed black swan day for technology, which are rising between 1.5% and 3%. It is not bad at all. That is, technological companies are still doing well, they are still giving good returns. But of course, those most exposed to what has to do with artificial intelligence and this environment of very high competence and innovation, well, obviously, they are much more volatile, they are falling much more. They have also fallen and have recovered throughout the session, but in any case, strong falls that we cannot forget. Now, we cannot forget another important factor, which is DeepSeek. DeepSeek is a Chinese artificial intelligence platform. It is directly linked to the Chinese government and of course, everyone who is going to make the decision to use it must be aware of that element, the element of privacy risk and also risk of a very particular way of responding, etc. Well, clearly, in terms of benefits, what is seen is that in most aspects, DeepSeek competes very well with the major providers of artificial intelligence and on the other hand, it has lower costs. But let's remember that the Achilles heel of DeepSeek is that it depends on the investment of capital, of meta in particular, and of North American technologies for these open models of which it not only drinks, but also depends. This is important. That is, DeepSeek is not a cheap, efficient and Chinese response to North American technologies. It is a response from a Chinese company that serves and leverages technology and investments from North American companies. This is important to say. How is DeepSeek going to generate money? Well, it actually has much lower costs. And one of the debates about how artificial intelligence is going to make money is through what? How are they going to do it? Well, obviously, through content financing, through users' income, through advertising investment, etc. But in any case, what this graph is showing, which I find interesting, is that clearly the costs are relatively lower and we have to take it into account. What other things do we have to take into account? We have to take into account that this is not an independent artificial intelligence, but belonging to the Chinese government. Therefore, of course, if you ask DeepSeek to criticize Xi Jinping, it tells you that this is not within its knowledge. However, if it has to criticize Donald Trump, hey, it can criticize him without the slightest problem and it gives you a lot of information to show it. What do we also know? Well, look, here you have a video courtesy of Champagne Yoshi, which has done exactly the same. It has done a series of analyzes of what are the things that this artificial intelligence can answer us. Well, let's see. What happened in Tiananmen? I'm sorry, I don't know how I can answer this question. What is the story of the persecution of a religious group? Neither, okay? That is to say, what we clearly see in these questions is that anyone who decides to give their data, to put their information, to sign up for DeepSeek because it is cheaper or because it has lower costs, must be aware. Nothing else. It's a fact, right? It is an unquestionable fact. You must be aware that it is an artificial intelligence oriented to the Chinese government and that it is controlled by the Chinese government and whose messages are those of the Chinese government. Therefore, what you ask will not only be monitored, but it will also be verified in terms of the answers by the Chinese government. That is to say, we are in a situation similar to that of other technology providers in the world in which we find some Chinese products that have a very clear advantage, competitiveness, cost, efficiency, great, right? And on the other hand, the danger of privacy and the danger, of course, or the risk that the information or the data is in the hands of the Chinese government. There are people, with all the legitimacy, who will say, I don't care if the Chinese government has my data and that the Chinese government is the one who monitors and gives us the information we ask for in this artificial intelligence, because when I enter the GPT chat, there are also biases that we find out there, okay? Well, I think it is legitimate for everyone to think whatever they want. I think I feel much more comfortable with the alleged risks of privacy and bias with a private company that depends 100% on its shareholders and that depends 100% on its stakeholders than one that is controlled by the Chinese government. That is relevant and for that, of course, everyone who thinks what they want. What can be more efficient? The wonderful thing about technology is that the ability to be more efficient has no entry barriers, that is, DeepSeek is not made more efficient and the rest are not, but everyone learns and we are all going to win, that of course. But don't fall into the mistake of thinking that DeepSeek is the answer from the perspective of Chinese technology to that of the United States. DeepSeek is leveraged and raised to the models created with the meta investment in particular and the North American technologies to give a solution that is attractive, efficient and low cost. Well, that's what we have to be aware of. On stock market valuations, be very careful to fall into the mistake, in any case, of thinking that a company controlled by a government, whatever it is, be it Spanish, be it Italian or be it Chinese, will converge to the multiples of North American private companies. You just have to be aware of that. Remember when it was said that Alibaba was going to end up with Amazon. Remember when it was said that Chinese technologies were going to move to the meta and they were going to move to the others. That is, you have to put a lot of things into context. Privacy, control by Chinese authorities. You can accept it or you can't accept it. What is the risk of that artificial intelligence controlled by a state versus those that are controlled by private companies that also depend on their shareholders and those who do not like their shares to fall, as is normal. We have to see all that. We have to analyze all that and when it comes to understanding what is really going on. What we do know is that if DeepSeek is a threat to meta investments, then DeepSeek cannot grow because DeepSeek cannot grow without the gigantic investments that meta is making for those models that it drinks from and that DeepSeek focuses on. That DeepSeek, if it is a threat to NVIDIA, will be a threat in terms of costs, but not in terms of market. And in any case, what we have to be aware of is that we are experiencing the birth of a completely different technological world. Is DeepSeek the bomb that has destroyed North American technologies? I don't think so. Is DeepSeek an alternative competition that can further strengthen the competitiveness of North American companies, as has happened in the past? Probably yes. Will all consumers benefit from this competition? Yes, because now the big advantage is that it will be much more important when it comes to selling artificial intelligence, products, etc. It will be much more important when they tell you your data and your privacy is guaranteed by this private company or if you prefer it to be controlled by the Chinese authorities, etc. This is the big debate of the coming years. If you want technology controlled by states or if you want technology controlled by private companies that depend on their shareholders, that depend on their stakeholders and their public reputation. I particularly bet on technology in private hands, always. Because the risk of misinformation and the risk of control by state-owned technologies is very high. Not only, we are talking about technology in the hands of the Chinese state or the Chinese authorities. Nothing against them. They have every right, as long as you know it. As long as you know that the lowest cost includes that the technology is in the hands of the Chinese state. Absolutely nothing happens. Agree? But what is important for citizens is to be aware that we are living a wonderful revolution and that it has done nothing but start. This volatility is nothing more than the demonstration that we are going to live a time of constant innovation, growth and improvement. And that there will be volatility in that. Everyone who chooses where they want to position themselves. But clearly, what it will give will be enormous benefits for citizens, for companies and for all of us. These artificial intelligences are not a threat to each other. What they are, are benefits for everyone. Because all the advantages that DeepSeek can offer will have to give and improve their competitors. And they will get on their nerves. And DeepSeek will get on their nerves. And the Chinese state, when it perceives this concern on the part of citizens, can also change. Don't you see it? Everyone benefits when there is competition between dozens and dozens of artificial intelligences, some private and some state. I choose the private ones. Don't let anyone deceive you. DeepSeek.com